Financing for Company-owned 5th Wheel?

tama2112 wrote:
Hi folks,
Two dealerships I am working with are running into roadblocks with my financing. I need my corporation to own the 5th wheel for tax purposes, but the lenders that the dealerships use only offer loans to individuals.

Any ideas? I do not want to lease the 5th wheel to my company, it needs to own it.

Thanks!

Unless your business has a significant credit history you will most likely also need to be on the loan as the guarantor or primary. It can still be registered/titled in the company's name and loan paid with company funds but the bank is really relying on your credit.

mich800 wrote:

tama2112 wrote:
Hi folks,
Two dealerships I am working with are running into roadblocks with my financing. I need my corporation to own the 5th wheel for tax purposes, but the lenders that the dealerships use only offer loans to individuals.

Any ideas? I do not want to lease the 5th wheel to my company, it needs to own it.

Thanks!

Unless your business has a significant credit history you will most likely also need to be on the loan as the guarantor or primary. It can still be registered/titled in the company's name and loan paid with company funds but the bank is really relying on your credit.

Absolutely. I'm prepared to do that. But thI lenders just don't want to do a company period.. weird...

I think the problem is that you are going through the dealerships for the loan. Go get your own loan and pay the dealership with a check. Try the bank that handles your corporation's finances first.

Buy it then lease it to your company. Check tax implications, but I think they may be even better.

Most of the time, if you're willing to sign a Personal Guarantee, they will finance. You can then have it put in any name at that point.

What's the business purpose for your company needing a 5th wheel? Can you spell a..u..d..i..t?

Quit trying to finance at the dealer. Go to the bank your corp normally does business with.
Why does the corp "need" to own the RV? Maybe check with an accountant first.

Lwiddis wrote:
What's the business purpose for your company needing a 5th wheel? Can you spell a..u..d..i..t?

Thanks for the response but this is what my CPA is requesting. Not asking for tax advice folks ;)

Have you inquired at the bank that handles the corporate checking and investment accounts?
And I don't think you need to have a lien on the RV to make the interest deductible so a general corporate loan for equipment may work fine.

Lwiddis wrote:
What's the business purpose for your company needing a 5th wheel? Can you spell a..u..d..i..t?

Really???
One could come up with a business purpose for anything from a box of cereal to a fleet of RV's. As a contractor, I could justify a RV as lodging for my out-of-town employees. The fed govnt has established rates for lodging, per diem, etc. In any kind of reasonably sized metro area, I could get $80/night for lodging and $50 per day for food. If my CPA was advising me to do something, then I'd do it. Their job is not only prepare my taxes but to also help maximize my personal benefit while minimizing my tax burden.

And if I put my company name on my Lamborghini and use it to wine and dine clients, then I've created even more tax reduction possibilities.
(if I had a Lamborghini)